Office market picks up speed

Commercial development activity rose at the fastest rate for six months in November, according to quoted property services company Savills.

A survey by Savills showed that an increase in activity had been reported in all areas of commercial development across the UK.

Mat Oakley, head of commercial research at Savills, said: “Following a lull in the third quarter, it is evident that developers are looking forward to 2005 with renewed optimism. It is a reflection of the steady recovery of the leasing markets that has been seen across the UK over the past three months.”

The volume of private and public sector work was greater last month than in October, with the private sector leading the way. This was because of the high number of contracts awarded and greater and firmer demand from occupiers.

The survey divided the UK into three areas: London, the South-east and the regions. London showed the least growth in activity, followed by the rest of the South-east. The rate of growth in refurbishment activity was the strongest overall.